"We can’t control performance but we can control tax, the clients journey and preferences and their asset allocation," he said.

At the same time, financial advisers ought to be wary about switching into a managed account structure only to continue using active funds management products, Mr Burridge said.

"It is the next big mistake we are falling for and in light of the SPIVA report we should all take notice. Simply changing the business model from picking opaque managed funds to transparent managed funds (i.e. separately managed accounts) is going to achieve nothing," he said.